Who is responsible for enforcing anti-money laundering compliance in the mortgage industry?

The Financial Crimes Enforcement Network (FinCEN) is the agency responsible for enforcing anti-money laundering (AML) compliance in various industries, including the mortgage industry. FinCEN operates under the Department of the Treasury and plays a pivotal role in collecting and analyzing information about financial transactions to combat money laundering and other financial crimes.

In the context of the mortgage industry, FinCEN issues regulations that require mortgage lenders and professionals to implement programs to detect and report suspicious activities, which is crucial for preventing illegal funding of activities such as drug trafficking or terrorism. Compliance with these regulations involves establishing appropriate internal controls, training employees, and conducting audits to ensure adherence to AML policies.

Understanding this, the other options do not serve the same role in enforcing AML compliance. The Federal Housing Administration focuses on insuring home loans, the Financial Stability Oversight Council is concerned with systemic risk in the financial system, and the Consumer Financial Protection Bureau primarily deals with consumer protection issues related to financial products rather than directly enforcing AML regulations. This delineation reinforces why the correct agency for enforcing anti-money laundering compliance in the mortgage industry is indeed FinCEN.